Columns/Op-Eds, Uncategorized, Water / Climate

As communications infrastructure collapses, social media is saving lives in J&K

20:32 GMT, 9 September 2014, Mail Online India

Original Link is here

Tragedy has struck Kashmir once again.

That it is perhaps the severest since Independence is undeniable.

The human despair, spirit and resolve are all on display, and the entire country (real and virtual) seems affected by nature’s cruel intervention.

The efforts to rescue those stranded are feeble as the institutions, infrastructure and administrative resilience have been found wanting – yet precisely because of this, the courage and heroic efforts of individuals and some organisations stand out in stark contrast.

SS 1
Floods: The entire country (real and virtual) seems affected by nature’s cruel intervention.


Even as the embankments built in the times of the Maharaja have been breached by ravaging waters, the unfolding tragedy and response is also about the ‘angels or demons’, depending on your take on it – Social Media and the Armed Forces.

A recent report in a leading daily had one of the most powerful men in India, its Home Secretary, observe, “I simply cannot speak to anyone in J&K.”

The last 72 hours have seen the near total collapse of the phone network, and power lines have collapsed. This has complicated coordination and rescue, because stranded people have no way of telling rescue centres of their plight.

Worse still, Delhi is cut off from the Government of J&K, while the Government of J&K is cut off from the army, which is coordinating rescue efforts.

The army is the only body there that has managed to maintain some semblance of intra-organisational communications due to satellite phones. However, it has no way of knowing the location where people are stranded, or how many and how critical their situation is, since the normal method – air reconnaissance – is difficult at best given the cloud cover and weather.

And the much-vilified social media is coming to the rescue. Even as large parts of the mobile communication infrastructure have collapsed, some wireless communication and the traditional wire line communication networks have allowed people access to social media and various messenger services, websites, and some agencies.

SS 2

To the rescue: Social media has helped save the stranded


It has also allowed a degree of dissemination of situational reports, videos and distress messages, many of which have reached the army.

Whatsapp, FB messenger, Twitter and others are the most potent tools for the rescue teams in the valley today.

As a result what we have is the army using satellite phones to communicate, but basing its rescue efforts significantly on guidance from Whatsapp, Facebook and Twitter.

In that sense these have effectively replaced the search helicopter, the emergency beacon and the communications network of the valley.

For the governments at the Centre and in the state of J&K, which have frequently demonised social media, this must be a moment of revelation.

In February this year, the then Home Minister, Sushil Kumar Shinde, had vowed to “crush social media” to great applause from within his party and some others.

Yet today the home secretary cut a sorry figure, claiming “there is no means to communicate with anybody” till the 15 wireless systems he has sent to be set up in the valley come online.

Social Media, angel or demon? Let the debate begin.

The second story is that of the ‘men in green, blue and white’. Among the nation’s armed forces, they are reviled by a few liberals and a section of those in Kashmir, at the receiving end of Pakistani venom and terror, and frequently derided by the political class in the state and centre.

Yet had it not been for the army’s rescue teams and its “infrastructure of occupation,” as secessionists would call it, how many more lives would have been lost?

At a time when the democratically-elected government of J&K has failed in its civic duties in buttressing the embankments (which they should have known about anyway) and a home ministry that is fumbling in the dark, it is this supposed villain that has come out as the knight in shining armour.

It is this same “infrastructure of occupation” – helipads built on apple orchards, hospitals built on peach orchards and supply dumps built on farm land – that are now being used so effectively to rescue the stranded, treat the wounded, and provide relief supplies to the displaced.

It is this same infrastructure with its bulldozers that is being used to clear roads, and the army trucks that sustain the “occupation” that are being used to ferry in essential supplies for the “occupied”.

Given the police, local government and central government networks failed within the first few hours of the flood and the Doordarshan system which could be used as an emergency communications system also collapsed in this period, it has been the army’s communication systems that have provided the only link between J&K and the rest of the country.

It is the maligned Armed Forces Special Powers Act used to “suppress” Kashmiris, that the army is using to deliver critical supplies to the “occupied”.

And yet vultures who some in Kashmir refer to as “freedom fighters”, would rather support infiltration even at this time, then help their brethren. The IAF, let this debate end.

This is not to say that social media and the deployment of the Armed Forces are always virtuous. The use of social media for malicious purposes is proven. The use of the medium to incite and radicalise is also rampant.

Yet it is a force for good as we saw this past week.

Challenge and vilify the user, do not condemn the tool.

Similarly, the deployment of armed forces has resulted in actions that are highly avoidable. Some of their heavy-handed interventions have resulted in justifiable anger and resentment.

Here again, challenge the political mandate and policy direction from the government, not the army, which remains a force for good.

The writer is vice president at the Observer Research Foundation. His twitter handle is @samirsaran

 

 

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Columns/Op-Eds

I love being an Editor

 Mail Today | New Delhi, August 31, 2014 | UPDATED 10:43 IST
Original link is here 

The editor’s free articulation of his views can ensure voices of public figures can often be drowned out.


I am a noble soul and was a spiritual glint in my parent’s eyes. I am the editor of a newsroom in the mightiest democracy of the developing world. I have immense responsibilities; to my image, to my brand, to my viewers and to my ever growing legion of fans. News is all about perceptions and I am the master conjurer; I love stoking your imagination and I love being an Editor.

For the last twenty-five years I have been part of a great game that I first devised and then played, with the rules always keeping up with my moods. News is, but a reason that brings me and mine closer, our monologue is what defines the nation, my sermons are what weaves together the believers and my outbursts are what keep the nation straight. I answer to a higher calling and carry a spiritual burden. I love being a digital gladiator, I love being an Editor.

I am the toast of the town. I have the best cars, reside in posh parts of town, host the fanciest of parties and am invited to every classy bash. Everyone who is anyone has my mobile number. Those who want to be someone, want my number. The numbers I delete are of those about to be obsolete. My recommendations for minister, for constitutional posts, for everything that means anything under the Indian sun, count for everything. I love being the hub, I love being an Editor.

Edicts

The past two decades or more of political chaos were the cue for me to assume leadership. In the absence of a worthy national leader, every ram, shyam and ghanshyam, in or out of the cabinet,tripped over themselves to give me a scoop -through leaked cabinet papers, or edited taped conversations. I know about government decisions before they happen. My voice on prime time is the national edict of the day. My criticism rolls back domestic policies and my whims lead to or prevent international crisis. I love being responsible. I love having the troubles of the world rest on my broad shoulder, I love being an Editor.

The Clintons talk to me of their plans and Kerry curries favour with me. I discuss the Middle-East with the Sheikh, human rights with The Aga Khan and secularism with the Pope. I know more about climate change, trade, IPR and security than I care to remember. Yet, my humility allows me to invite meek voices on my show. I need them as I need to share my wisdom. It is my adherence to the highest principles of corporate social responsibility that makes me share my studio with lesser beings. I love being humble. I love being an Editor.

What impresses me most about myself is how politically correct I am. I question the morals of politicians and businesses and babus and all the wayward souls. I fight to keep my studio mine alone. It is an endowment from the almighty. I resist any attempt by any political party, ideology or business agenda to capture this sacred space.

I show great accommodation when the nation seeks it. I allow colleagues to promote political agendas for months before finally taking the plunge and joining a political party. This is not space capture by a political unit as some have observed. This is a training programme for becoming spokespersons of political parties. I love grooming leaders. I love being an Editor.

Business

My job requires courage and this is what excites me most. I stand besides booming guns in the Himalayas because this makes for good TV. Yes, the infantry may cop a bit of counter fire – but that is the nature of the beast and brutes. I courageously describe the progress of counter terror operations in Mumbai to our next door neighbour, because you see news is global, information is power and would it be fair to deny me to the rest of the world? I love being valourous, I love being an Editor.

I hate the corporates and everything they stand for. They take credit for creating the business we’re in. Just because they created the platform, the networks and provided the technology and funds? Huh! They’re missing the wood for the trees because ‘I am Content’ and therefore I am the business.

Accountability

I hate their demanding accountability from the newsroom. What do they know about the power of this space? Or, how to exercise it. After all, did I not suppress a coal scam or two or a pharmaceutical fraud with sophistry? Did I not exonerate guilty as hell CEOs in the court of public opinion? Heck! Did I not cover up my virtuous friends land grabs in and around Delhi? I hate transparency, cloak and dagger love is so much fun. I love all the deals in the dark. I love being an Editor.

But the moment seems to be slipping away and a new game is in town. A man elected by the masses is in power, a government with a mandate to govern is on the job. And these accursed ministers appointed without my blessings. Aagh! Journalism through “access”, once a fine art is now dying, much like those dying crafts this nation hates to treasure and preserve. I feature in my sob stories every now and then. Self-pity is my companion, international press my friend. I’ll have to bide my time. Better still, I think I’ll perfect the prototype of a new-age victim. I love being a martyr, I loved being an Editor.

The writer is vice president at the Observer Research Foundation and tweets as @samirsaran

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Columns/Op-Eds, Non-Traditional Security, Politics / Globalisation

The European Union as a Security Actor

View from India

Bundeszentrale für politische Bildung Logo

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Das Bild zeigt die Glastüren des Haupteingangs zum Europapalast in Straßburg, Sitz des Europarats. Die Türen sind mit Euro-Sternen verziert.

Euro-Sterne auf den Glastüren des Hauptportals zum Palais de l’Europe, Sitz des Europarats in Straßburg. (© Ulrich Baumgarten/vario images)


 

What is a security actor and how is it different from being a great or major power? In many ways, this question is central to understanding the lack of appreciation of the European Union (EU) as an actor in the security arena in India and certainly in some other parts of Asia. The use of the word ‘security actor’ by EU agencies and research institutes is itself perhaps a neutralisation of the phrase ‘major power’. This reveals the ambivalence of the EU to power in contemporary times, despite having given the world several great powers in the past. This ambivalence, and the hesitant Asian comprehension of the EU’s role in the security domain shape the current debate.

However, to move beyond this general understanding and to try and understand the Indian perspective on this issue, three key enquiries are essential. First, does the EU have the agency to be a security actor? Second, does it have the capability and capacity to follow through in this role? And, finally, does the EU, or a significant part thereof, see itself as a Security Actor?

Agency: Who do I call?

The EU is a great economic power and is central to the construction of any polycentric order. In spite of this, it is not viewed as a security actor. Perhaps this can in part be explained by what Henry Kissinger once famously said, in an interview with Der Spiegel, ‘Who do I call if I want to call Europe?’. While the EU now has a number of structures that deal with security its security policy has not evolved to the point where it can shape emerging international security scenarios.

The principal issue is that of integration. Collectively, it appears that the EU thinks of itself more as a civil and economic power, viewing military instruments as an option of last resort. Within the EU, France and the United Kingdom have a different approach in which use of force, or the threat of the use of force is a prominent instrument in their toolbox. Some others like Germany tend to take the opposite view and are generally more reluctant to sanction the use of force.

This can have consequences like France declaring that its permanent membership of the United Nations Security Council will remain a French seat and will not be ceded to the EU. France has also rejected the validity of a UN veto when humanitarian crises loom (as was the case in Syria)[1]. These two French positions have led to both disappointment and alarm in other members of the EU. Damagingly for the EU, the latest crisis in Europe, i.e. the occupation and annexation of the Crimean Peninsula by Russia, has only confirmed this apprehension. The lack of a coordinated EU response is disconcerting, as what we have is a set of nations individually condemning Russian actions and others staying silent.

Trade and commerce across the EU is now so integrated that it allows for similar perceptions and ideas on most macro and several micro economic policies. This allows the EU far greater cohesion and therefore, weight in trade talks. On the other hand, political approaches and realities in each member country vary dramatically. This dissonance between a cohesive economic union and a relatively divided political union has a significant impact on the perception of the EU in a continent like Asia where the realist paradigm dominates. The EU is likely to be seen as a ‘hyper-successful’ regional trading and economic arrangement, but not a unified security actor or a ‘great power’. It is also seen to be creating a large political and security bureaucracy, which churns out some strategic and security objectives, without seeking to possess the hard power elements to realise these set of goals.

Capacity: Acute Deficit

Capacity is the key element that will define the EU’s ability in the Asian theatre. In 2012, as per the International Institute of Strategic Studies’ (IISS, London) estimates, Asian defence expenditure exceeded Europe’s. Indeed within the EU, member states are increasingly hesitant to commit towards defence expenditure. Additionally, the focus of current expenditure is on capabilities that are not decisive in the Asia-Pacific theatre or suitable for hard power projection in the classic sense. There is little political and public support for defence expenditure when social spending is deemed a higher priority.

As a result, the EU’s ability to play a role in the international system is going to be far more constrained than ever before. This is perhaps evidenced by the fact that not a single European or EU action has been carried out without US support even when taking on vastly inferior militaries like those of Serbia or Libya.

This acute capacity deficit means that if the EU chooses to act by itself, it comes up against the various perceptions among the EU member states on its role as security actor. On the other hand, if it chooses to act through the agency of NATO to bypass this internal dissonance, it is fundamentally dependant on the US for capacity.

Self-View: “Empire of Norms”

The recent description of the EU being an ’empire of norms’ is another important facet of the view of the EU as a security actor.[2] It connotes a renunciation of the modes and methods of traditional empires in favour of one that leads by example and rules, largely renouncing the use of force and prioritising economic integration. In this, the EU has something to teach the world; the postmodern construction of international relations. But beyond the EU, the post 1989 sense of euphoria, has not translated into political evolution that suggest support for any such new approach to sovereign relations.

The EU firmly believes it has entered a post modern world, whereas in reality much collective action today is directed towards pre-modern situations like Afghanistan, Iraq and Libya. To use an Americanism, ‘when you don’t have dirty work to do you can be dressed in white clothes’. As a result, when the EU piggybacks on US hard power, it can well afford to play the ’empire of norms’ role. This harks back to India in the 1950s and 1960s when India was ‘preachy’[3], telling Europe to peacefully coexist with the USSR, substituting rhetoric, largely to compensate for acute structural weaknesses. Today, India and Europe have traded places and the projection of EU rhetoric is seen as a sign of weakness, borne out by the structural factors discussed earlier.

View from Asia 1: Largely favourable

Immediately after World War II, the main goal was peace and stability and hence there was the need for a specific role for the set of actors who could provide this. But in the 21st century, the narrative has changed. Economic growth and prosperity, in an age of stagnant industrial growth, is the overarching political priority of these times. Even though the world may have moved beyond the post-war quest for peace, to the singular objective of greater economic vibrancy, the EU’s role in securing this objective cannot be denied given its economic agency. However, political stability is a necessary condition for sustainable growth and economic well-being. This stability is to be created and preserved collectively by the old and new powers. Therefore in Asia, in countries such as India, there exists a largely favourable view of the EU’s role in the world. India sees a decisive security role for the EU, albeit as an agent of ‘The Asian Century’.

Following from this, if the EU is a decisive player in the contemporary context, European hard power is not necessarily viewed unfavourably and is a situation that India can negotiate well. A strong EU is good for the balance of power and stability in Eurasia and therefore favourable to India. In fact, a not so uncommon view in India is that if there is a decline in the EU’s hard power, it might contribute to flux in the balance of power in Eurasia, leading to instability. Thus, the EU is still seen as a decisive actor in the security dynamics of Asia. And a real example is the EU’s arms embargo on China, which could be said to contribute to stability in Asia.

However, in India, the EU is also seen as hypocritical in its application and espousal of rules and norms. This is sometimes inimical to the larger objective of stability and prosperity because the EU is perceived to be trying to impose normative frameworks on societies, which are not yet ready to accept them. This is not necessarily an EU-specific flaw. Every country has displayed this hypocrisy where its core interests are at stake. India itself follows a very different set of rules in its own neighbourhood than in the rest of the world. For example, India intervened decisively in 1971 in Bangladesh and for much of the 1980s and 1990s in Sri Lanka. But where its core interests are not at stake, it adopts a very different stance.

While largely hypothetical, India’s main concerns, should the EU decide to play the role of a security actor would be: where and how does the EU want to operate? Does it merely look at its periphery? Or does it seek to project out? If it operates for longer periods of time in Asia, will it be in a continental or a maritime role? Given that the naval dimension and the security dynamics of the Indian Ocean have largely driven much of India’s strategic realignment post 1990, India would almost certainly welcome EU as an offshore balancer. This is evident from the fact that India welcomed the EU-led operation Atalanta aimed at controlling piracy off the coast of East Africa. Similarly, India voiced no concerns at the build up of a formidable projection force off the proximate Myanmar coast following cyclone Nargis, and actively cooperated with US and European navies in the wake of the Boxing Day tsunami in 2004.

View from Asia 2: Geography and Sovereignty Matter

Multiple path dependencies, along with the overarching economic prosperity objective mean that the EU’s cost-benefit analysis of engaging in Asia, for example, is very different from India’s. The EU would have more to lose economically in any prolonged military engagement in Asia and therefore prefers economic tools such as sanctions. Of course geography matters not just to the EU. This is evident in how India perceived Bangladesh in 1971 and how it perceives the situation in Syria today. In the case of the former, the instability in India’s neighbourhood had a direct impact on India’s demography and security and the cost-benefit analysis of action was very different to the likely costs of EU’s action in the region. Syria, on the other hand, was more of a normative issue for India on how it balanced humanitarian intervention against a breach of the Chemical Weapons Convention (CWC); whereas Syria had a more proximate impact on Europe and subsequently on its cost-benefit analysis of action.

Lastly, in a continent like Asia that has a history of being colonised, sovereignty is an important consideration. From this perspective, the EU’s rather relaxed interpretation of sovereignty, partly used in its explanations for humanitarian interventions, can be seen as unsettling. Moreover, the selective use of sovereignty can erode the credibility of the EU as a whole. For example, defence sales such as those of the Rafale, Gripen or Eurofighter are carried out under sovereign flags and these in turn guarantee certain sovereignties to recipient countries. However, when uncomfortable decisions are taken such as the arms embargo on China, the EU is used as the shield, effectively a policy of safety in numbers.[4] This means bilateral brownie points accrue to individual sovereign constituents of the EU, without translating into advantages to the EU as a whole. However, disadvantages and the resultant negative perceptions are spread across the board and impact on the image of the collective.

Conclusion: Going Forward

Going forward, there are four central cleavages between the Indian and European worldviews.

The first has to necessarily be language and the principle source of information that shapes Indian understanding of Europe and EU. Not having a core of experts trained in European languages, a disproportionately small foreign service and a structural incapability to collect primary data[5], much analysis of Europe and the EU rests on secondary source analysis of a euro-sceptic English language press. Consequently, the nature of the EU’s decision making remains even more of a mystery to Indian audiences.

The second is that the EU (for reasons already discussed) is not viewed in India as a credible security actor. In fact, Europe’s recent humanitarian interventions are seen as creating dangerous precedents in Asia, changing the security dynamics in the region and creating fresh security challenges which the EU does not have the capability to deal with. This is where India and the EU are on a collision course. India wants Europe to be more cognisant of its hard security role. In addition, India wants the EU to be responsive to emerging security issues, which will be shaped by new specificities and geographies of conflict. Local understanding and localised responses would be in order and Europe must begin to engage from within and not from outside.

The third is with regard to global governance. European institutes tend to securitise the global commons and global public goods discourse.[6] Every economic and social service provision is being subsumed under a security discourse. This approach may be useful to galvanise public opinion in the Euro-Atlantic community; but in Asia, where societies are still evolving and discovering a balance of narratives between the political and military discourse, it could be dangerous and counterproductive. In countries like Pakistan and Bangladesh, if water, environment and trade become security narratives, discussions within and among these regional countries would essentially become zero sum games. Additionally, the preponderance of the military architecture and defence bureaucracy diminishes the role of democratic institutions and the role of civilian governments. This is counterproductive to the liberal democratic value system that EU espouses. It may appear that in order to compensate for its lack of military heft, the EU seeks to overbalance through the securitisation narratives.

Finally, the central division between the EU and India is the tyranny of grammar. Europe and the EU pursue their interests under the grammar of values, which is sought to be achieved through ideological underpinnings. India has sometimes also couched many of its strategic interests in its own grammar of ethics. Till a new language is discovered where the two can negotiate their individual interests (doing away with ideological sermonising), common ground (based on core interests of prosperity, growth and liberal market framework) will be lost to a rather unnecessary battle of perceived virtues.

Fußnoten

1.
Opinion expressed by French Foreign Minister, Laurent Fabius, 5 October 2013, »ambafrance-in.org«.
2.
Jan Zielonka, »Europe as a Global Actor: Empire by example? (PDF)«, International Affairs, 84(3), 2008.
3.
Bhaskar Roy, ‘Tharoor questions Nehruvian line’, 10 January 2010, »timesofindia.indiatimes.com«
4.
‘Tharoor for overhaul of Foreign Service Recruitment System’, 8 October 2012, »thehindubusinessline.com«
5.
For example, when Finland wishes to raise uncomfortable issues with Turkey, »finnbay.com«.
6.
See, for instance, ‘The securitisation of climate change in the European Union’, »climateandsecurity.org«

Samir Saran is vice president at the Observer Research Foundation, India’s premier public policy think tank. Besides heading the business of the foundation, he writes extensively on and researches issues such as south-south cooperation, role for BRICS, cyber governance, economic and politics of climate change and trans-boundary water governance.

 

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BRICS, Columns/Op-Eds, Politics / Globalisation

Waking up to the BRICS

Opinion» Lead 

Original link is here

BRICS members should democratise the New Development Bank’s functioning if new stakeholders are included in the future. If anything, the NDB must be a template for change, not a mirror to the existing hegemony of money

In his 2001 paper titled “Building Better Global Economic BRICs”, economist Jim O’Neill of Goldman Sachs calculated that “if the 2001/2002 outlook were to be extrapolated, over the next decade, China would be “as big as Germany” and Brazil and India “not far behind Italy” on a current GDP basis. Cut to 2013; Jim O’ Neill’s expectations seem modest. Last year, China was the world’s second largest economy, Brazil ahead of Italy and India just one rank behind in terms of current GDP. In purchasing power parity (PPP) terms, all the BRIC countries were within the top 10, with China and India at second and third position respectively. BRIC, in Wall Street lingo, is an “outperformer.”

Despite the crippling financial crisis, BRIC has done better on pure economic terms than most expectations. But the acronym is today representative of much more than an investment narrative alone. With the inclusion of South Africa, BRIC became BRICS, giving a pluralist and inclusive veneer to an economic idea. This group now has a significant political dimension, as is evidenced by the increasing number of converging positions on political issues.

In a follow-up paper in 2003, titled, “Dreaming with BRICs: The Path to 2050,” Goldman Sachs claimed that by 2050, the list of the world’s largest 10 economies would look very different. It is remarkable then, that in 2014 the list already looks radically different, and it is clear that it is time to “wake up” to the BRICS.

NDB versus existing banks

In this context there were at least two concrete arrangements inked at the sixth BRICS Summit in July, which will have a large economic and political impact. These were the Contingent Reserve Arrangement and the New Development Bank (NDB). Conversations and reportage on these two were shrill, coloured and obtuse in the run-up to the Summit. It continues to follow in the same vein. Indeed the NDB is at once the most celebrated and critiqued outcome of the Fortaleza Summit. Now that we are a few weeks away from its public conception, it is time for a reality check on this widely discussed BRICS achievement.

The first reality is the NDB can neither replace nor supplant the role of the existing development banks. The NDB will not be able to compete with the reach and expanse of existing institutions such as the World Bank, which has a subscribed capital of over $223 billion. The bank borrows $30 billion annually by issuing Triple-A rated debt in international bond markets. Such easy access to capital markets on the back of high promoter creditworthiness allows the bank to have a lower cost of funds. Other development finance institutions enjoy similar financial backing. The Asian Development Bank (ADB) too has a large balance sheet, backed by 67 member nations and a subscribed capital of $162 billion.

In contrast, the NDB will require over half a decade before it can accumulate the stated capital base of $50 billion from within BRICS and another $50 billion (approximately) from other countries and institutions. Indeed, in the immediate term, only a modest $150 million has been promised by each of the BRICS countries. A contribution of $1,850 million thereafter, staggered over five to six years, will require some doing as the BRICS countries are grappling with weak balance sheets, fragile current accounts and other domestic imperatives.

Then, there are other questions that will need to be answered in the days ahead. If China is unable to dominate this institution, will it prefer to prioritise investments through its (proposed) Asian Infrastructure Investment Bank? How soon can the central banks of the member countries devise arrangements to act as depository institutions for the NDB? And, how will the NDB raise funds in different countries? What will be the currency or currencies of choice? All important posers which can be addressed if the resolve is unerring.

Development finance

The second reality is, in spite of its modest economic weight in the initial years, the NDB can change the ethos of development finance irreversibly. Rather than replacing or supplanting existing development finance institutions, the NDB will seek to supplement existing resources. In fact, the World Bank President, Jim Yong Kim, has welcomed the idea of the NDB and acknowledged its potential in infrastructure development and the global fight against poverty.

An important difference could be in the way conditions and restrictions are imposed on loan recipients. Bretton Woods Institutions such as the World Bank have been known to impose conditions for lending that create structural mismatches between project funding, demand and supply. As recently as last year, the World Bank Group decided to restrict funding for new coal plants in developing countries, deciding instead to invest greater resources in “cleaner” fuels. Of course, the World Bank would be well advised to reconsider this decision given lifeline energy needs and the energy access realities in developing countries such as India.

The NDB’s mission must be to create a business structure where borrowing countries are given greater agency in prioritising the kinds of projects they would want funded. Over a decade, this could become the demonstrator project through which the relationship between donors and recipients, lenders and borrowers, will be rewritten. Hopefully this will be in favour of developing economies and will enable the reimagining of economic pathways.

Location and ownership

The third reality — perhaps, the most debated — is that the location of the NDB is immaterial when governance and ownership is equally shared. Location has frequently been confused with ownership, skewed by our imagination of existing institutions such as the World Bank. According to its Articles of Agreement, major policy decisions at the World Bank are made through a Super Majority — 85 per cent of votes. Vote shares in turn are determined by the level of a nation’s financial contribution. With around 16 per cent voting share at the World Bank, the U.S. has a de facto veto. Conversely, BRICS, with 40 per cent of the global population and a combined GDP of $24 trillion (PPP), collectively accounts for a mere 13 per cent of the votes at the World Bank.

As such, the concentration of voting power and headquarter location in Washington DC in the case of the World Bank is merely a coincidence. Japan dominates the functioning of the ADB with a 15.7 per cent shareholding, despite the headquarters being located in the Philippines.

It is also useful to note that previous World Bank presidents have been U.S. citizens and the International Monetary Fund’s (IMF) list of managing directors is composed entirely of Europeans. Even the ADB’s presidents have been Japanese citizens, with almost all of them having served in the Finance Ministry in Tokyo. In this regard, the NDB, with its intention of rotating leadership, seeks to overhaul the existing governance framework prevalent in the international development finance institutions. Through equal shares of paid-in capital in the NDB, there is a clear intention of creating an alternative model that focusses on voting-power parity. The smallest country can negotiate at par with the biggest country.

Will BRICS create a framework that is as democratic in sharing governance space with other investors and stakeholders? This will be something to watch for as the systems and structures evolve. The notion that the NDB has been “Shanghai-ed” is perhaps a shallow understanding of this exciting new initiative.

With an equal voting share, all five countries have to be on board to move in a particular direction. Admittedly, this can be hugely inefficient and troublesome. Therefore, it is incumbent upon BRICS members to ensure that this initial at-par equity in governance does not unexpectedly allow for a super majority like gridlock, restricting decision making because of a lack of consensus. The NDB must be dynamic and lithe, much like the BRICS grouping itself. It would be useful for BRICS members to institute a professional management body for steering everyday operations of the NDB as well as all non-policy related decisions, including those dealing with project funding.

And most importantly, as discussed earlier, BRICS members should democratise the bank’s functioning if new stakeholders are included in the future. They must find ways to engage the recipients and beneficiaries in its decision-making apparatus. If anything, the NDB must be a template for change, not a mirror to the existing hegemony of money.

(Samir Saran is vice-president at the Observer Research Foundation and available at @samirsaran on Twitter.)

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Rebalance & Reform : An Agenda for The New Government

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Columns/Op-Eds, Water / Climate

Calibrating India’s Climate-Change Response

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SP

A street in New Delhi, India with crisscrossing power lines shows one of the dilemmas facing the Indian government in its struggle to provide reliable electricity.
(Stanley Foundation/Amy Bakke)


 

India and other developing countries have consistently ­emphasized the notion of equity in the climate-change debate, advocating a “common but differentiated responsibility”—the principle that all states are obligated to address global environmental degradation, but not equally so.

This approach, however, is fast reaching its structural limitation since a number of countries, including some in the G-77 and the Alliance of Small Island States, are indulging Western lobbies that seek to dilute it and have already hinted at accepting a compromise.

Without the full support of developing countries including China, which is clearly distancing itself from the G-77 narrative, India will shortly find itself isolated without enough political weight to continue pushing for the common-­but-differentiated approach. It has to rethink its equity-centric narrative without risking being politically outmaneuvered in multilateral discussions.

The narrative will need to be both progressive and inclusive, with a focus on accommodating fundamental realities in the implementation framework of the United Nations Framework Convention on Climate Change (UNFCCC), such as the fast rates of urbanization in the developing world, which will inevitably lead to changes in consumption and production patterns.

India should adopt a fresh approach to better align its domestic and multilateral commitments before 2015, when a large part of the world negotiates a global response to climate change under the auspices of the UNFCCC. Careful calibration by India’s new government, which was elected in May 2014, requires a series of actions: the articulation of a viable normative framework within which to place its climate-change response, the provision of modern commercial energy, enabling efficiency gains in large companies through market mechanisms, and investment in adaptation.

LOW-HANGING FRUIT
Despite a sustained thrust for energy access by previous Indian governments, elaborate planning has unraveled through poor implementation. Around 300 million Indians still do not have access to electricity, and millions more merely have notional access. While the electrification of a number of new areas has proceeded, the quality of electricity—essentially the number of hours in a day that grid power is available—remains highly variable. Moreover, the new government has to enable an energy transition not just to cater to the nominal needs of so-called light-bulb electrification, but also to enhance industrial competitiveness. For this, it will need to relentlessly pursue all viable energy options.

Although India’s energy basket is coal dominated, India does not produce enough of the material to sustain domestic consumption, and even if its development can be accelerated, domestic coal consumption will peak in a couple of decades. In the years ahead, coal imports will add a new degree of fragility to India’s fiscal stability. Even as the government renews attempts to overhaul the coal sector, development of natural gas supply chains—new port infrastructure for liquefied gas as well as pipelines connected to massive gas fields in nearby regions such as West and Central Asia—offers an unparalleled opportunity to scale up power generation. Additionally, unlocking domestic gas potential will also need some bold political leadership as it involves creating market-based pricing mechanisms to attract domestic and foreign investment. Indeed, gas has the potential to become India’s bridge fuel until other alternative energy sources can be mainstreamed.

While gas presents an opportunity for the medium term, reaping the low-hanging fruit must be an immediate priority of the new government. Creating the right market conditions can enable efficiency gains in large companies. Simply through demand-side management, energy consumption in the industrial sector can see efficiency improvements of up to 25 percent. Moreover, greater operational efficiency has virtually unlimited potential. Substantial energy savings are possible if financial-incentive mechanisms that employ market forces and reward such efficiency gains are promoted. Templates for such financial instruments already exist, such as the Bombay Stock Exchange’s GREENEX index, which tracks energy-efficiency performance of listed stocks. There is great equity in ensuring that the big corporations in India achieve energy and resource efficiency levels consistent with global best practices. It will also bolster India’s global position as it seeks equity while engaging with the richer and more-developed countries.

Perhaps the most critical area for India’s response to climate change must be adaptation. It needs to invest in actions against the imminent threats posed by climate change irrespective of how the global discourse progresses. Investments must be made through innovative channels, using a mixture of capacity-building programs, awareness campaigns, traditional solutions, and new technologies. A good example of an appropriate adaptation response would be to look at areas such as the financial engineering of insurance products to protect farmers from erratic weather patterns.

TOWARD 2015
It is already clear that the new government is likely to rely on sustained economic growth as the primary instrument for responding and adapting to climate change. This, of course, has its own set of implications for India’s emissions, which are likely to increase before stabilizing in the long term. The twin objective for the government in New Delhi must be to peak India’s emissions as quickly as possible and to keep the peaking emissions as low as possible.

Therefore, at home, India will largely need to focus on rapidly building up generation capacity, using efficient coal-mining and combustion processes, exploiting opportunities that natural gas offers, and investing in green technologies and efficiency gains. At the global level, India must ensure that the 2015 negotiations do not impede its ability to offer a better life to its people or make the cost of the provision of lifeline services too steep. Both agendas must be pursued simultaneously.

Samir Saran is a senior fellow and vice president at the Observer Research Foundation. He has diverse experience in the Indian private sector and was actively engaged with regulators and policymakers during the 1990s as India undertook economic reforms. Saran held various senior positions at Reliance Industries, India’s largest business conglomerate. An electrical engineer by training, he has a master’s degree from the London School of Economics and Political Science and has been a fellow at the University of Cambridge.

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Columns/Op-Eds, Non-Traditional Security, Politics / Globalisation

Knowing India’s nuclear credentials

Original link is here

SSAIM

The HinduThe civil nuclear deal, hinged on one clear principle that India’s military programme would irrevocably be separated from the civilian one, was based on arriving at an outcome that would benefit all parties and enhance the global order. Picture shows the Jaitapur nuclear power project site. Photo: Vivek Bendre


Manufactured Western outrage ignores the reality that under the landmark 2005 India-U.S. agreement, the IAEA has unprecedented access to Indian nuclear facilities

There has been a concerted attack on India from the usual suspects in recent days even as it was entering into negotiations to formally accede to the Nuclear Suppliers Group. As if on cue, Jane’s Intelligence Review carried out a “(non)-exposé” of an Indian military nuclear facility in Karnataka. As exposés go, it was lame even by Jane’s standards. The nature of the facility and location have been publicly available since 2010. Yet, this new “exposé” was carried by all mainstream print news outlets and predictably sensationalised with everyone feigning alarm and anxiety. This manufactured outrage culminated with a sanctimonious editorial in The New York Times that was remarkable for the sheer incoherence of its own arguments. As the designated chief of the non-proliferation ayatollahs (with blinkers) and representative of a motley anti-India group in the U.S. that is shrinking ever so rapidly, this too was on expected lines.

Assault on credentials

Nevertheless, it is important to dismantle the uneasy arguments of this concerted assault on India’s credentials. The first proposition that must be taken issue with is the propagation of a falsehood that Pakistan and its reckless build-up of nuclear stockpile is somehow driven by India’s posture. While Pakistan’s careless impulse may be a result of more than one central factor, it is important to understand that this may have a lot to do with its suspicion of American intentions. The oft-quoted argument is that Pakistan seeks to equalise the conventional mismatch with India through a misguided reliance on numbers of strategic and tactical warheads. The irrationality and illogic of this behaviour has been proven by the fact that a country like North Korea has deterred both the U.S. and South Korea with explosions that may not even have been nuclear. Pakistan’s vertical proliferation has no mooring to India’s strategic programme — only to its own paranoia. The question is what fuels this? There is no denying the fact that Pakistan was able to obtain “nuclear immunity” for its sub-conventional activities against India with even 10 warheads. It may well be the fear of the U.S. that motivates its build-up today.

 

New Delhi is already providing support to FMCT negotiation; its signature on the CTBT is linked to similar commitments by the U.S. and China”

 

One motivator is the pressure the U.S. has been applying on Pakistan (without success due to the China factor) to sign onto the Fissile Material Cut-off Treaty (FMCT), which will forever cap the Pakistani arsenal. Contrary to what the commentary would have us believe, the FMCT, instead of curbing fissile material, has demonstrably accelerated Pakistan’s programme. So much for flawed logic. The second is the fear of the American “Plan B”, which involves the seizure and confiscation of much of Pakistan’s nuclear arsenal. The former has driven Pakistan to enrich their extant stockpile of radioactive material to weapons grade at breakneck speed. The latter has ensured that Pakistan is rapidly weaponising its fissile stock, in order to disperse and complicate any such weapons seizure plans. These facts are well understood in Washington policy circles. The exposés and op-eds of the past weeks are for most just another edition of Aesop’s fables.

The second issue has to be the demonstrated lack of understanding of the reality that shaped the landmark civil nuclear agreement between the U.S. and India. This nuclear deal was based on one clear principle — that India’s military programme would irrevocably be separated from the civilian programme. This was not an optimal solution for India or for the P5, but like all international agreements it was based on arriving at an outcome that would benefit all parties and enhance the global order. International Atomic Energy Agency (IAEA) Director General Mohammed El Baradei in an op-ed in the Washington Post, specifically welcomed the deal without reservation, his rationale being “either we begin finding creative, outside-the-box solutions or the international nuclear safeguards regime will become obsolete.” This is now accepted wisdom. The IAEA has gained unprecedented access to India’s nuclear facilities. India has accepted additional protocols this June, and has strengthened its own export laws. Significantly, the same journals and reports confirm that India’s own arsenal has remained stable over the period with no increases despite the turbulence in the neighbourhood. The benefits of bringing India inside the ‘non-proliferation tent’ are therefore vast, visible and tangible.

While these editorials and reports may very well have got their facts and numbers right, the analysis is so convoluted that the facts they quote cease to be relevant. The argument goes that India needs to sign the FMCT, the CTBT, and agree to mutual weapons reduction with China and Pakistan, since it is the nuclear deal with the U.S. that has set the cat amongst the pigeons. Here then is some measure of reality. India is already providing active support to the FMCT negotiations — it is a work in progress, not yet a concrete treaty. It has been Pakistan that has been blocking the work at the conference on disarmaments negotiations.

Additionally, India’s signature on the CTBT is explicitly linked to a similar U.S. and Chinese commitment. As long as they do not ratify these two treaties, India has a voluntary unilateral moratorium on testing. What is holding up Indian accession is U.S. and Chinese accession.

Experts in Beijing claim that China’s expansion and modernisation of its nuclear forces is being driven by the ill-advised and deeply destabilising withdrawal of the U.S. from the Anti-Ballistic Missile (ABM) treaty. This has nothing whatsoever to do with India.

India, therefore, is first being made the whipping boy for the failure of the American non-proliferation lobby in their own country and then it has to accept blame for the complex relations the U.S. shares with Pakistan and China that is driving these Asian allies to increase their arsenals. Can we get real, please?

(Samir Saran is vice-president and Abhijit Iyer-Mitra is programme coordinator at the Observer Research Foundation.)

 

 

 

 

 

 

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Samir Saran

BRICS, In the News, Politics / Globalisation

BRICS Development bank will be good for members,especially India-Strategic Policy Expert

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BRICS, Columns/Op-Eds, In the News, Politics / Globalisation

First Xi-Modi meeting finds common ground

Global Times | July 20, 2014 19:33

Original Link

When India and China meet, the world watches” were the words Chinese President Xi Jinping used to capture the interest generated by his first meeting with India’s new Prime Minister Narendra Modi.

Whether the world was watching or not, the public in both countries keenly followed the first interaction between the two Asian leaders on the sidelines of the BRICS summit in the Brazilian town of Fortaleza.

The meeting passed the initial hurdle of establishing camaraderie between the two leaders. The images and videos that have found their way across the news and social media portrayed a favorable body language and easy chemistry. That the meeting, slated for 40 minutes, lasted nearly twice as long also signals the importance both leaders attached to this engagement.

The meeting can be captured in two words: pragmatic optimism.

That Modi chose to address the contentious border issue in his very first meeting demonstrated a sense of political realism. The Indian leader understood that such a vital element of the partnership cannot be swept under the carpet, even as the BRICS summit itself was gearing up to announce some very positive outcomes.

That Xi also chose to underscore the need for finding an early solution demonstrates their acknowledgement of the negative implications of this lingering border dispute on the larger relationship.

Both countries surely realize that any further economic integration will inevitably hit the political wall if an early solution to this legacy dispute is not discovered.

While it may seem an onerous task, a degree of progress has already been made.

During the previous decade, a great deal of effort has been invested by the empowered special representatives to discover a mutually acceptable and creative solution. In fact, those in the know suggest that it is not impossible to finalize a settlement. What was lacking was the political leadership capable of implementing the same.

With two strong leaders, there exists a golden opportunity to move beyond the border defense cooperation agreement signed last year to one that is conclusive and sustainable.

However, the serious nature of the conversations around the border issue did not deter the two strong leaders from making a strong and optimistic case for deeper economic cooperation and coordination.

The leaders discussed an enhanced role for China in the Indian economic story. The new Indian leadership seems ready to invite large Chinese investments in industrial parks, infrastructure and other key sectors of the economy. At the same time, India seeks reciprocity from China by allowing more efficient and larger market access to Indian goods and services.

Both of these measures would help balance the current large trade deficit in favor of China.

The convergence in the positions of the two countries on most global economic and political governance issues helped the BRICS arrive at an acceptable framework for the new development bank and contingent reserve arrangement. This growing proximity was specifically established when Xi invited India to the APEC summit later this year.

These are early days for Xi and Modi. There are plenty of hurdles that will need to be managed. There is a whole universe of professional naysayers on both sides and in other parts of the world that will exploit negative developments.

Both leaders will have to carry along their security and strategic establishments with them; not the easiest groups to handle. They also have to manage and guide the public mood in favor of more robust ties with each other.

The recent interaction emphasized people-to-people relations and tourism, and perhaps that is one of the ways to do this.

But the crucial factor that can help transform this bilateral is Modi himself. For the first time, the Chinese will interact with an Indian leader who can be politically strong in safeguarding India’s sovereign interests, while at the same time being very welcoming in embracing China economically.

The author is vice president and senior fellow with Observer Research Foundation in Delhi. opinion@globaltimes.com.cn

 

 

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